We wouldn't blame Star Shine Holdings Group Limited (HKG:1440) shareholders if they were a little worried about the fact that Wing Sing Tsoi, the Executive Chairman recently netted about HK$34m selling shares at an average price of HK$0.90. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.6%.
View our latest analysis for Star Shine Holdings Group
The Last 12 Months Of Insider Transactions At Star Shine Holdings Group
Notably, that recent sale by Wing Sing Tsoi is the biggest insider sale of Star Shine Holdings Group shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (HK$2.25). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 4.6% of Wing Sing Tsoi's holding.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Star Shine Holdings Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Star Shine Holdings Group insiders own 65% of the company, worth about HK$1.8b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Star Shine Holdings Group Tell Us?
An insider sold Star Shine Holdings Group shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 3 warning signs for Star Shine Holdings Group (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.